Oracle stock up 1.4% today: what to expect from earnings

Shares of Oracle moved higher on Thursday even as broader US markets declined, with investors turning their attention to the company’s upcoming fiscal third-quarter results.

At the time of writing, the Oracle stock was up around 1.4% to trade at $154.60.

The enterprise software giant is scheduled to report results for the third quarter of fiscal 2026 on March 10.

The stock has fallen roughly 22% so far this year as investors evaluate the company’s significant spending on artificial intelligence infrastructure, rising debt levels, and its close ties to partners such as OpenAI.

Despite the pressure on Oracle’s shares in recent months, Wall Street sentiment remains broadly constructive, supported by strong demand for the company’s cloud services.

Market weakness weighs on equities

Oracle’s gains came during a weak session for the broader market.

The Dow Jones Industrial Average declined 801 points, or 1.6%, dragged lower by losses in stocks including Caterpillar and Goldman Sachs.

The S&P 500 fell 0.9%, while the Nasdaq Composite dipped 0.6%, reflecting continued volatility across equities.

Against this backdrop, Oracle’s modest gains stood out as investors positioned ahead of the company’s quarterly report.

Oracle earnings expectations

Analysts expect Oracle to report adjusted earnings per share of $1.71 for the quarter, representing year-over-year growth of 16.3%.

Revenue is projected to reach about $16.9 billion, a 20% increase compared with the same period a year earlier.

Historically, Oracle has had a mixed record in delivering earnings surprises, missing analysts’ estimates in four of the past nine quarters.

For the upcoming results, investors are expected to focus primarily on growth in Oracle’s cloud business and the strength of demand tied to artificial intelligence workloads.

The company has been signing large cloud deals connected to AI deployments, which have supported strong expansion in its cloud segment.

Market participants will also be looking for updates on data centre construction and capital expenditures as Oracle ramps up infrastructure investments to support AI computing.

Debt and financing questions persist

Even as demand for AI infrastructure grows, analysts have raised concerns about the financial implications of Oracle’s investment plans.

RBC Capital Markets recently lowered its price target on Oracle shares to $160 from $195 while maintaining a Sector Perform rating ahead of the earnings release.

The firm pointed to ongoing uncertainty around Oracle’s ability to fund its commitments to the Stargate project.

As of the second quarter of fiscal 2026, Oracle carried total debt of $131.7 billion, negative levered free cash flow of $13.2 billion, and approximately $12 billion in capital expenditures.

Blue Owl, Oracle’s largest Stargate financing partner, declined late last year to support the proposed one-gigawatt Michigan Stargate campus.

The investment firm cited less favourable lease terms and concerns about rising leverage.

Oracle has since indicated that its financing requirements could be significantly below $100 billion and is reportedly in discussions with alternative equity partners.

Citi on Oracle stock

Meanwhile, Citi lowered its price target on Oracle to $310 from $370 but maintained a Buy rating on the stock.

The firm attributed the target reduction to multiple compressions across the broader software sector.

Citi said Oracle’s capital expenditures could accelerate after its recent debt and equity issuances, which may help alleviate concerns about funding the company’s data centre expansion.

Oracle’s upcoming earnings report will serve as a key test for investor confidence in the company’s strategy of aggressively expanding AI-related infrastructure.